On Thursday, the House of Representatives approved the tax reform bills forwarded by President Bola Tinubu to the National Assembly. The bills include the Nigerian Tax Bill, the Tax Administration Bill, the Revenue Tax Board Bill, and the Nigerian Revenue Service Establishment Bill.
The approval followed a detailed clause-by-clause consideration of the amendments made during the process. Some notable amendments include the decision to maintain the current Value Added Tax (VAT) rate at 7.5 percent instead of implementing a staggered increase, as well as extending income tax exemptions to specific agricultural businesses and military officers.
With the adoption of the report on the tax bills, the House is working towards the eventual passage of the bills next week. James Faleke (APC-Lagos), Chairman of the House Committee on Finance, assured Nigerians that the concerns raised by the public were addressed in the documents. He noted that the tax bills underwent three full days of public hearings with input from over 80 key stakeholders and an eight-day retreat to debate each clause. Faleke expressed confidence that the resulting laws would be widely accepted.
Faleke also commended the House leadership for entrusting his committee with the responsibility of processing the tax bills and presenting them for consideration. He praised President Tinubu for prioritizing the reform of tax laws, highlighting that many existing laws date back to 1959, making them outdated and unable to meet the country’s current business, survival, and revenue needs.
Deputy Committee Chairman Saidu Abdullahi (APC-Niger) emphasized the extensive debate the tax reform bills generated, noting that input from representatives across all geopolitical zones helped to shape the final version of the bills. He thanked the Speaker, Tajudeen Abbas, for facilitating consensus among stakeholders, ensuring that the process was inclusive and transparent.
Ikenga Ugochinyere (PDP-Imo) also praised the process for its transparency and the adjustments made by the Executive to address public concerns. He expressed pride in the reform, stating that it would expand the tax net, increase government revenue, and enhance tax collection efficiency while protecting small businesses.
Benson Babajimi (APC-Lagos) added that all stakeholder concerns, including issues related to inheritance tax, derivation, and VAT, were carefully considered in the process. He expressed optimism about the successful passage of the bills and awaited Senate concurrence.
The successful approval of the bills marks a significant step toward updating Nigeria’s tax laws to better meet the country’s economic and revenue needs.